Chapter 10
Monitoring and
Information
Systems
Copyright 2012 John Wiley & Sons, Inc.
Terms
Monitoring - Collecting, recording, and
reporting information concerning any and
all aspects of project performance
Controlling - Uses the data supplied by
monitoring to bring actual performance
into compliance with the plan
Evaluation - Judgments regarding the
quality and effectiveness of project
performance
10-2
The Planning–Monitoring–Controlling
Cycle
We mainly want to monitor:
– Time (schedule)
– Cost (budget)
– Scope (project performance)
Closed-loop system
– Revised plans and schedules following
corrective actions
10-3
Project Authorization and Expenditure
Control System Information Flow
Figure 10-1 10-4
Designing the Monitoring System
Identify key factors to be controlled
– Scope
– Cost
– Time
Information to be collected must be
identified
10-5
Designing the Monitoring System
Continued
Do not want to avoid collecting necessary
data because it is hard to get
Do not want to collect too much data
The next step is to design a reporting
system that gets the data to the proper
people in a timely and understandable
manner
10-6
Data Collection
Once we know the data we want, we
need to decide how to collect it
Should the data be collected after some
event?
Should it be collected on a regular basis?
Are there any special forms needed for
data collection?
10-7
Much Data Involves
Frequency counts
Raw numbers
Subjective numeric ratings
Indicators
Verbal measures
10-8
Information Needs and Reporting
Everyone should be tied into the reporting
system
Reports should address each level
Not at same depth and frequency for
every level
– Lower-level needs detailed information
– Senior management levels need overview
reports
Report frequency is typically high at low
levels and less frequent at higher levels
10-9
The Reporting Process
Reports must contain relevant data
Must be issued frequently
Should be available in time for control
Distribution of project reports depends on
interest
– For senior management, may be few
milestones
– For project manager, there may be many
critical points
10-10
Benefits of Detailed and Timely Reports
Mutual understanding of the goals
Awareness of the progress of parallel
activities
Understanding the relationship of tasks
Early warning signals of problems
Minimizing the confusion
Higher visibility to top management
Keeping client up to date
10-11
Report Types
Routine - Reports that are issued on a regular
basis or each time the project reaches a
milestone
Exception - Reports that are generated when
an usual condition occurs or as an
informational vehicle when an unusual
decision is made
Special Analysis - Reports that result from
studies commissioned to look into unexpected
problems
10-12
Meetings
Reports do not have to be written
They can be delivered verbally in
meetings
Projects have too many meetings
The trick is to keep them to as few as
possible
10-13
Meeting Rules
Use meetings to make group decisions
Start and end on time and have an agenda
Do your homework before the meeting
Take minutes
Avoid attributing remarks to individuals in
minutes
Avoid overly formal rules of procedure
Call meeting for serious problems
10-14
Common Reporting Problems
Too much detail
Poor interface between the
data/procedures of the project and the
information system of the parent
company
Poor correspondence between the
planning process and the monitoring
process
10-15
Earned Value Analysis
Have covered monitoring parts
– Timing and coordination between individual
tasks is important
Must also monitor performance of entire
project
– Crux of matter should not be overlooked
One way is by using an aggregate
performance measure called earned
value
10-16
The Earned Value Chart and
Calculations
Actual against baseline ignores the
amount of work accomplished
Earned value incorporates work
accomplished
Multiply the estimated percent work
complete for each task by the planned
cost
Only need percent complete estimate for
tasks currently in progress
10-17
Rules to Aid in Estimating Percent
Completion
50-50 rule
0-100 percent rule
Critical input use rule
Proportionality rule
10-18
The Earned Value Chart
Figure 10-6 10-19
Variances
Variances can help analyze a project
1. A negative variance is bad
2. Cost and schedule variances are calculated
as the earned value minus some other
measure
Will look at some of the more common
ones
10-20
Cost Variance (CV)
CV = EV – AC
Negative variance indicates a cost
overrun
Magnitude depends on the costs
10-21
Schedule Variance (SV)
SV = EV – PV
Negative variance indicates you are
behind schedule
Measured using costs
10-22
Time Variance (TV)
TV = ST – AT
Negative variance indicates you are
behind schedule
10-23
Indices
Cost Performance Index
CPI = EV/AC
Schedule Performance Index
SPI = EV/PV
Time Performance Index
TPI = ST/AT
Cost Schedule Index
CSI = EV2/(AC)(PV)
10-24
“To complete” and “At Completion”
Project manager reviewing what is
complete and what remains
Final cost and final completion date are
moving targets
The project manager compiles these into
a to complete forecast
Actual + forecast = final date and cost at
completion
10-25
ETC and EAC
ETC = (BAC + EV)/CPI
EAC = ETC + AC
where,
ETC = Estimated cost to complete
BAC = Budget at completion
EV = Earned value
CPI = Cost performance index
EAC = Estimated cost at completion
AC = Amount expended to date (actual cost)
10-26
Milestone Reporting
Reports that are created when a project
reaches a major milestone
They are designed to keep everyone up-
to-date on project status
For executives and clients, these may be
the only reports they receive
10-27
Computerized PMIS (Project
Management Information Systems)
Real projects are often large
– Hundreds of tasks
– Thousands of work units
Reporting is clearly a job for the computer
Project management information systems were
one of the earlier applications
Initially focus was on scheduling
Now it includes, earned values, variances, and
more
10-28
PMIS Errors
Managing the PMIS
Computer paralysis
PMIS verification
Information overload
Project isolation
Computer dependence
PMIS misdirection
10-29
PMIS Desirable Attributes
Friendliness Graphics
Schedules Charts
Calendars Migration
Budgets Consolidation
Reports Access
10-30
